Answers |4

Great question, and with proper prior planning, a lot may be accomplished.

First, look at your immediate cash needs and your future cash/retirement needs. Do you have any high-interest debt that you can pay off to enable an increase in your monthly cash flow? What does your current retirement plan look like? Are most (or any) of your assets exposed to the volatility of the market?

Everyone's situation will be different, and there are many factors to contend with.

If you have an immediate need for cash - for example, you need to pay down debt or you do not have a minimum of 6 months living expenses set aside in a liquid account - I would suggest using it for that. If there is any left over, or provided you have no immediate cash needs, I would look at purchasing a fixed index annuity.

Just make sure you seek the advice of a qualified advisor who is not going to try to "sell" you something. Be sure to research whatever is recommended and do not rush into any decisions.

I agree with Michael, especially the last paragraph where he says "do not rush into any decisions' since rushing with large sums of money is almost always followed by regrets. A "cooling off" period is good when someone leaves us - and then a large sum arrives; those are two heavy duty life changes almost all at once, and our decisions will be influenced whether we recognize it or not.

Outside of immediate living expense needs, the best thing to do is park the proceeds into a savings account and give yourself time to breath a bit and figure things out. I have seen people go through in months money that was and could have lasted for years without a second thought until it was gone. Then they have a bunch of "stuff" they can use because they have no money left.

Take your time, write down what your needs and wants are and establish a time table of sorts to handle the distribution of those funds to make them last as long as you need.